Car Insurance.... I don't understand the Maths

rocco1504

Hi
I took out a policy last in June year, and now need to cancel, as the car is beyond economical repair, Not an accident, just wear and tear.
When I took it out I paid out an initial sum, and then, as I'm not working, paid the rest monthly by Direct debit.
The Figures are : Premium £187.34
Service Charge £15.00
Legal Cover £40.00
Interest Charge £25.35

---

£267.69
Balance by DD £215.06

Plus I took out Breakdown Cover which is costing £9.52 PM, but I'm not sure that this is covered in the above.
My point is, i'm paying £31.02 PM for this Insurance, and there are another 6 payments to go which is £186.12, having just spoken to Swinton, they say it's going to cost £74.92 to cancel the Insurance, plus £38.08 to pay off the rest of the Breakdown cover, Total £ 113, now I had their Rep trying to convince me that I would only save £11 whatever by canceling, when all I can see is that if I keep paying, i'm losing £73,12.
Can anyone explain how this works, as I just can't see how they arrive at only £11 saving, i'm not bad at Maths but this has got me stumped.
Many thanks for listening

dacouch

Swintons normally put on a fee of £50 when you cancel.

The Insurers also normally have a charge for cancelling.

The premiums for the legal cover and breakdown cover are normally not refundable.

P.S Has anyone else seen Legal Cover sold for £40, that is some mark up on something that costs Swintons somewhere between Free and £3.70 (Assuming it's normal legal cover with no Personal Accident)

Astaroth

Any insurers/ brokers pay for LE on Motor these days? Some LE providers pay the insurer/ broker to sell the product let alone charging them!

rocco1504

Hi again
I was of the understanding that the £50 cancel charge was in with the £74.92 to cancel the insurance, or is that just what the Insurance Co is charging, and Swinton bang their £50 on top ?

Also, i'm not expecting anything to be Refunded, just not to have to keep paying, surely that saves me more than £11 ?.